The exterior design of textile products mainly consists of the fabric pattern and the pattern and design of the garment style. This is a special type of intangible asset. The designer or owner will have independent rights to the design. The designs of WTO members will be protected as practical art works according to China's "Regulations on Implementing International Agreements." China has promised to devise special laws to protect textile product design.

7. Complying with TRIMs Agreement of the WTO

Currently, projects involving a capacity increase in cotton textiles, chemical fiber and wool textiles are checked and approved by relative government departments. Regarding chemical fibers, there are still restrictions on the proportion of shares held by foreign investors. For instance, no solely owned, foreign-invested enterprise in ammonia fabrics, polyester and acrylic is allowed. After the WTO entry, we should follow "TRIMs."

Under general circumstances the restrictions on geographical areas, quantity, proportion of shares for foreign-invested enterprises and other restrictions on investment should be relaxed. In the current clearing campaign of the administrative approval procedures, the procedure for approving chemical fiber and wool textile capacity will be abolished and the "two certificates" management system for cotton production capacity will be retained.

8. Agreement on special-protection measures

Should a WTO member country believe textile garment imports from China have harmed its enterprises, before January 1, 2009, via discussions, China will control the exports quantity of one or more types of textiles and garments "at a level no higher than 107.5 percent of the exports quantity to the member country in the first 12 months before the most recent discussions (wool products are 106 percent)." On one hand, this will enable the importing countries to adopt optional protection methods against Chinese products and, on the other hand, it will enable countries that did not implement restrictions on Chinese products to restrict Chinese exports.

9. Other methods kept by WTO members

Argentina abolished quota (bilateral) restrictions on textiles and garments before July 31, 2002 and will cut the excessive tariff every year. Although Hungary has proposed to restrict imports of textile products from China, it will open its market phase by phase. Mexico can use anti-dumping measures against textile and garment imports from China and is not bound by the relative WTO anti-dumping agreement and the documents relating to China's WTO entry. These countries promised to abolish regulations that do not comply with WTO regulations against China three to six years after China's entry into the WTO.

[Source: China Textile Industry Council]

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